This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Commodity Prices Rise In January On Bullish Data, Rising Optimism

The UBS Bloomberg Constant Maturity (“CM”) Commodity Total Return Index (ticker: CMCITR), a modern commodity index designed to reduce the potential negative effects of contango, returned 2.62 percent in January, following a gain of 2.80 percent in calendar year 2012, according to data released today by Van Eck Global and Bloomberg.

Commodity prices rose during the month as the “fiscal cliff” impasse came to an end, the U.S. debt ceiling debate was extended until May, and the Federal Reserve allayed fears that its quantitative easing program would end. Commodities were also lifted by increased optimism in the U.S. and China, the latter of which saw year-over-year economic growth in the fourth quarter of 7.9 percent, a rate of expansion that pleased investors.

Energy was the best-performing commodity sector in January, while industrial metals moved into a positive uptrend, supported by the optimistic China data. Agriculture climbed due to bullish supply and demand data. Precious metals hovered near zero as investors digested positive economic data and mixed signals from the Fed. Livestock was the worst performing sub-sector of the month.

CMCITR roll yield was positive for the month. WTI contango and Brent backwardation both narrowed. Natural gas contango narrowed and continued to hover within manageable levels. Wheat contango narrowed and sugar moved into backwardation during the month. Copper and gold contango widened, while silver contango narrowed.

CMCITR outperformed the other main “constant maturity” indexes during the month, including the Continuous Commodity Index (CCITR: +2.22 percent) and the Greenhaven Continuous Commodity Index (GCC: +2.24 percent).

CMCITR also outperformed the more traditional Dow Jones UBS Commodity Index (DJUBSTR), which returned +2.40 percent, though CMCITR was outperformed by another more traditional index, the S&P Goldman Sachs Commodity Index (SPGSCITR), which returned +4.36 percent.

CMCITR diversifies across 28 commodity components and up to five maturities. The Index was designed to minimize investment exposure to the front end of the futures curve; and by diversifying exposure across multiple maturities the Index seeks to mitigate the impact of contango, a major concern for commodity investors.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs